**Proposed Balance Sheet Modifications for FY 2024**

**Line 24 Name change**

Current:  

Proposed:

**Justification:**To further differentiate the type of debt on this Line and Note from the Federal Debt and Interest Payable line per GAO proposals.

**Other Debt – USSGL 259000 (N) crosswalk placement**

Current: 

Proposed: 

**Justification:**

· 259000 fits better in Note 18 (Other Liabilities) rather than Note 14 (Debt) per A-136

· SFFAS 1 clearly defines and sets guidance for Accounts Payable, Interest Payable, and other current liabilities, which are described as “on-going continuous expenses.”  Types of long-term financing instruments or debt arrangements are not covered under this standard.  Although 259000 is “other” in nature, it is  intended to capture these long-term “other” liability/financing activities.

· SFFAS 5 par. 47 – This paragraph of this standard talks about Federal Debt issued by U.S. Treasury or other federal agencies but has been deemed as not applicable in a recent technical inquiry response from Fiscal Service regarding a Bonneville Power Administration debt arrangement, since the debt was issued by a non-federal agency (Western Power, associated with the state of Washington rather than the federal government.)  We would also not apply this FASAB standard to other existing and potential future debt arrangements issued by non-federal agencies, similar to this one.  The fact that this standard is not applicable to debt arrangements issued from non-federal agencies leads to this type of debt arrangement not being included in Note 14 and therefore not crosswalked on the Balance Sheet to the Federal Debt and interest payable line.

· FASAB does not directly address “Other Debt” in any of its authoritative guidance or interpretations, therefore Fiscal believes that presentation under the Other Liabilities line and note is most appropriate.  The next steps within the GAAP hierarchy include looking to other similar transactions or to other standard-setting bodies-These also lead to “Other Liabilities” as the most appropriate reporting option.  Agencies can further break out by subline in their AFR if they believe their debt arrangement significant enough to warrant being spotlighted.

· Survey Results support this placement.

**Additions to Balance Sheet for FY 2024**

**New Lease USSGLs**

**Analyzed in Working Group but no revisions**

· **221100 (N) Witholdings Payable –**Analysis was performed on whether to move to Line 30, which is currently titled Federal Employee and Veteran Benefits Payable (FEVBP).  It was also analyzed as to whether this USSGL should move under this line if that line title changes to Salaries and Benefits of Federal Employees and Veterans Payable (SBFEVP).  Ultimately it was determined that this USSGL shall remain under Line 37, Other Liabilities.

· **269000 (N) Other Acturarial Liabilities –**Analysis was performed on whether to move to Line 37, Other Liabilities, or if it should remain under Line 30 regardless of whether it is titled FEVBP or SBFEVP.  Ultimately it was decided that this USSGL will remain under Line 30.

· **New USSGL to split 221000 between payroll & leave –**It is under consideration to create a new USSGL to split funded payroll and funded leave.  This one relates to the potential line 30 name change and will need to be decided on in unison.  There is also strong pushback, mostly due to agency burden on this change.

**Items Still Under Review & Analysis**

· **134000 (F) Interest Receivable Not Otherwise Classified –**USSGL 134900 (Interest Receivable on Uninvested Funds) was voted in by USSGL Board Members in May of 2022 with an effective date of FY 2023.  With this new USSGL it was expected that several agencies would be making reclass entries in the first quarter of FY 2023 to move current balances in 134000 into 134900 to portray these receivables more accurately.  After the reclass entries occur, the Balance Sheet working group will need to determine if the current line 3.4 (Accounts Receivable) and reciprocating category 22 are the most accurate placement.  If any changes are to be made it is likely to be effective FY 2025.

· **214000 (F) Accrued Interest Payable – Not Otherwise Classified –**USSGL 214900 (Interest Payable on Uninvested Funds) was voted in by USSGL Board Members in May of 2022 with an effective date of FY 2023.  With this new USSGL it was expected that several agencies would be making reclass entries in the first quarter of FY 2023 to move current balances in 214000 into 214900 to portray these payables more accurately.  After the reclass entries occur, the Balance Sheet working group will need to determine if the current line 22.2 (Accounts Payable) and reciprocating category 22 are the most accurate placement.  If any changes are to be made it is likely to be effective FY 2025.

· **Line 30 (Federal employee and veteran benefits payable (Note 15) potential name change –**It is under consideration to change the title of this line to Salaries and benefits of Federal employees and veterans payable to more accurately define the activities that fall under this line.  Balance sheet working group survey results did support this change, however, VA who has a large stake in most of the USSGLs within this line did not agree and sent a proposal.  Below is the proposal, but at this time nothing has been decided.

· Suggested breaking line 30 into two lines

· 1) Employee Salary, Leave, and Benefits

· 2) Veterans and Other Post-Employment Benefits

· **221000 (N) Accrued Funded Payroll and Leave – crosswalk placement –**It is under consideration to move this USSGL, which currently resides on line 37 (Other liabilities) to line 30 (FEVBP or SBFEVP).  This one relates to the potential line 30 name change and will need to be decided on in unison.

Page 2 of 2IRC Handout November 30, 2022